In a startling revelation, a sandwich bot on the Solana network, known as “arsc,” has netted an astonishing $30 million in just two months through maximal extractible value (MEV) attacks.
An MEV sandwich attack is a cunning strategy where an attacker places their transactions before and after a victim’s transaction, manipulating the price for profit. This allows them to buy tokens at a lower price and sell them within the same block, capitalizing on the price change.
Ben Coverston, founder of MRGN Research, highlighted on June 15 that the bot operator has meticulously avoided detection while amassing profits. The bot’s primary wallet, identified as “9973h…zyWp6,” is believed to be a cold storage, holding $19 million, including $17 million in Solana (SOL) tokens and $1.1 million in USD Coin (USDC).
Another active wallet, “Ai4zq…VXKKT,” engages heavily in decentralized finance (DeFi) activities, converting SOL to USDC and holding significant positions in various tokens. This wallet holds over $9.9 million.
The third wallet, “BCbrp…vi58q,” serves as the bot’s main SOL bank, utilizing numerous signers and tippers for sandwich attacks. Combined, these wallets possess nearly $30 million, showcasing the bot operator’s stealth and efficiency.
Coverston notes that the bot’s operator seems to prefer staying under the radar, as they’ve made efforts to conceal their activities and profits. Despite their attempts, the sheer scale of their earnings has drawn attention.
MEV sandwich bots are not unique to Solana. They are prevalent on Ethereum, where over $1.38 billion has been extracted from users through similar tactics by April 2023, according to MEVBlocker.
The case of the arsc bot on Solana highlights the ongoing challenges in securing blockchain networks from sophisticated MEV attacks. As these bots continue to evolve, users must stay informed and vigilant to protect their assets.